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Do Retirees Have Realistic Expectations for Future Care? Study Says No

A middle aged couple looking at the laptop together

You already know that for a more fulfilling and happier retirement, being in good financial shape is important. However, as people live longer, additional emphasis is being placed on taking care of your health too. That’s because, during your retirement years, health care will be one of your biggest expenses.  

How Much Care Will I Need as I Age?

According to the Department of Health and Human Services, almost 70% of seniors will need long-term care at some point for an average of 3 years.  

Older people also tend to spend more on prescription drugs and other health care. In fact, a Peterson-KFF analysis of U.S. government data found that in 2019, older adults 65 and over accounted for 35% of health care spending while being only 17% of the population. Also, in 2023 Fidelity Retiree Health Care Cost Estimate predicted a single person aged 65 in would need approximately $157,500 saved (after tax) to cover their retirement health care expenses and an average retired couple could need approximately $315,000. 

So, being as healthy as possible for as long as possible can not only allow you to enjoy life on your terms, but it can also help stretch your retirement savings. 

MassMutual Study Results

 A 2024 study by MassMutual polled 2,000 American “retirees” (defined as 15 years or fewer into retirement) and “pre-retirees” (15 years or fewer before retirement) found that to achieve happiness in retirement, it’s crucial to work on your financial and physical health before you retire. Taking care of both allows you to be more active,  pursue hobbies and spend more time with loved ones. Here are some other important facts this report uncovered. 

Planning for retirement.

  • At least five years prior to retirement, retirees most often said they were preparing by contributing money to a retirement account (64%), increasing their savings (60%) and paying off debt (53%). 
  • Fewer retirees made efforts to take care of their health (39%) or reach out to old friends or make new friends (7%) in the years leading up to their retirement. 
  • The most common regrets retirees reported was not increasing savings (15%), not taking care of their health (13%) and not reducing expenses (12%).  

Preparing for a happier retirement.

  • Nearly half (49%) of retirees who are much happier in retirement planned for it by taking care of their health (e.g., exercising, eating healthy) compared to 32% of retirees who are not happier in retirement. 
  • When thinking about retirement, pre-retirees are most anxious about finances. However, once in retirement, retirees worry most about health issues. 

Retirement anxiety driven by concerns about health and finances.

  • Financial uncertainty (44%), not having enough money to support myself/my family (43%) and health issues (42%) are top sources of anxiety for pre-retirees. 
  • Retirees are most anxious about health issues (34%), financial uncertainty (26%) and feeling old (22%). 
  • Retirees are more likely to feel they have experienced more illness/disability than expected the longer they’re retired (18% retired within the last 5 years vs. 30% retired 11-15 years ago). 

Your Happier Retirement Starts at Freedom Plaza

At Freedom Plaza, you’re free to focus on your retirement without having to worry about planning for future care, if you need it because we’ve got it all here. To learn more about our contact options along with our lifestyle, use our Community Assistant chat feature or contact us here.